Shared Ownership in London | Shared Ownership Scheme

What is Shared Ownership Scheme? It is a buying scheme that allows buying a share of the desired property and then paying rent to a landlord on the rest of its value.

Typically, buyers opt for the shared ownership scheme when they cannot afford a deposit combined with mortgage repayments for a desired home.

Shared Ownership Eligibility

Requirements, perks, and rules for the scheme differ across the regions, but there are several common guidelines:

Shared Ownership Property Requirements

Not all property across the UK, including London, is suitable for buying via shared ownership. These are the main requirements:

Buying Your Property Share

Typically, Shared Ownership means buying between 25% and 75% of the property value. However, several properties offer 10% ownership.

Buyers can take a mortgage to buy this share or pay with savings. Note that it is required to pay a deposit (5%-10%) on the share you are going to buy.

Unsurprisingly, the scheme allows buying more property shares in the future, known as staircasing. Put simply, owning more means paying less rent as its amount depends on the landlord's share.

Shared Ownership Application Requirements

There are several eligibility requirements for buyers interested in Shared Ownership properties.

Note that some Shared Ownership properties imply that you need to live or work in the area (or have some connection to it) where you are buying a home.

Shared Ownership Explained Step-by-Step

The process of buying a new Shared Ownership home in London typically goes like this:

Other types of properties available for sale:

There are so many neighbourhoods in London. If you are still undecided, have a look at one of these. Only up-to-date offers for you. Choose where your dream home will be!

Frequently Asked Questions

FAQ

How to find Shared Ownership houses in London?

1newhomes allows a quick and efficient search for shared ownership homes in London. Select the filters and get a tailored selection of new builds available via this scheme.

Can I sell a Shared Ownership Home?

Yes, it is possible to sell your shared ownership home at any time. If you own less than 100%, you need to inform the landlord, and he will find a buyer within a specified time (set out in the lease). You can then sell the share on the open market in case the landlord cannot find a buyer.

Owning 100% allows selling a shared ownership home at any time on the open market.

How does Shared Ownership Work in London?

The scheme works similarly in London and across the UK, but there are subtle differences. For instance, the maximum annual household income requirement for shared ownership properties in London is £90k instead of £80k.

Also, new builds in London are more expensive, meaning shared ownership homes will also require higher deposits, mortgage payments and rents. In addition, these homes are typically provided by housing associations specialising in affordable houses, and they may have various extra policies and procedures.

Is Shared Ownership in London good?

Shared Ownership is a beneficial option for those who find it challenging to gather a complete deposit for their first property. This approach offers significant advantages, such as reduced rent payments, government support, and lower initial costs.

Moreover, Shared Ownership grants you the benefit of greater certainty. By investing your available resources now, you can rest assured that you are actively progressing towards your goal of becoming a homeowner.

Who Can Qualify For Shared Ownership?

To be eligible for the Shared Ownership scheme, you must meet the following criteria:

You must be at least 18 years old.
You must be a first-time buyer, or if you have previously owned a home, you can qualify if you can no longer afford to possess a property.
Your household income should be below £80,000 per year.
Additionally, there are certain checks ensuring your ability to manage the monthly expenses and other associated charges. This process entails a mandatory financial interview conducted by an independent financial advisor.

Can You Be Kicked Out Of Shared Ownership?

Being a shared ownership homeowner provides security, as you cannot be evicted from your home like a regular tenant. Since you own a portion of the property, the housing association does not have the authority to carry out an eviction if, for instance, you encounter difficulties in making rental payments.

However, it is essential to note that, in particular circumstances, the housing association may file a court order. Among them could be repeated non-payment or substantial damage to the property.

What is Staircasing & How Does It Work?

Staircasing is an option available to residents of Shared Ownership properties after a specified duration, as per the conditions in their lease agreement. It refers to the process where you can purchase additional shares in your property beyond the initial share.

For instance, if your first buy was a 25% share, acquiring another 25% later would increase your ownership to 50%. This method, known as staircasing, enables shared owners to progressively increase their stake in the property, often up to full 100% ownership.

Shared ownership